11:24 | 08/01/2020 Global Economy
Indonesia’s decade-low inflation rate has sparked concern among several economists that it foreshadows a further weakening of the largest economy in Southeast Asia.
|Illustrative image - Photo: Jakarta Post|
The consumer price index (CPI) inched up 2.72 percent in 2019, the lowest since 1999 when the CPI rose by 2.13 percent.
Speaking at a press conference on January 2, Chief Statistician of the BPS-Statistics Indonesia Suhariyanto concluded that prices are under control, but the government should be careful with low inflation, which showed poor consumption and hurt production.
Accounting for more than half of the gross domestic product, household spending only rose by 5 percent in the third quarter of 2019, lower than 5.17 percent in the second quarter. Meanwhile, economic growth dropped to 5.02 percent in the third quarter year-on-year, the lowest over the past two years, said Director of the Centre of Reform on Economics of Indonesia Mohammad Faisal.